Campus-based Aid
Although the vast majority of financial aid is issued through the college or university, only some of it is actually administered by the school, as opposed to state and federal governments. Financial aid actually administered by the school are known as campus based aid, and include the Federal Work Study Program, Federal Supplemental Education Opportunity Grants, and Federal Perkins Loans. The amounts that schools can award in campus based aid is limited, unlike Direct Loans from the government, that’s why there’s no guarantee that they’ll have enough of this aid to help every student. Therefore it’s extremely important to apply for aid as early as possible.
Cancellation
Cancellation of repayment of a student loan is possible under some circumstances. In case the borrower’s death, or when he/she becomes permanently disabled, the loan can be canceled. There are other situations where a loan repayment can be canceled, among them are when the borrower joins the military and the armed services would repay a part of the loan for every year the student serves. Moreover, many state and local governments have programs to encourage students to pursue careers in critical needs areas, such as inner city school teachers, or rural health care practitioners, and will often agree to pay off the student loans of people who agree to serve in these capacities for a certain number of years.
Capital Gain
The difference between what someone paid for an asset, such as stocks or real estate, and what it was worth when they sold it, if that amounts greater than what they paid for it.
Capitalization
Capitalization is also called “compounding”. Capitalization simply means that any unpaid interest is added to the balance of the loan, increasing the principal, or the amount owed. Interest is then compounded on the new balance. It will cost a student loan user more money in the long run, so if it’s possible to pay the interest while you’re in school, it would be in your long term financial interest to do so.
Collateral
Collateral is any property that is used as security, or a guarantee, for a loan. When the borrower defaults, the collateral can be sold to satisfy the debt. Very often collateral is a house, but it can be anything of substantial value.
Collection Agency
A business that makes money by trying to collect payment from people who’ve defaulted on their loans.
College Board
A nonprofit association of colleges, universities, educational systems and other educational institutions which designs and administers standardized testing programs, such as the SAT and Advanced Placement tests, nationwide.
College Work-Study (CWS)
Not to be confused with the Federal Work Study Program, college work study is any part time job either on or off campus.
Color of Federal Forms
To help students ensure that they’re filing the correct forms for the correct years, the government prints the FAFSA and SAR in different colors over a four year rotation: Green (2005-2006), Blue (2006-2007), Yellow (2007-2008), and Pink (2008-2009). As for the parents form, it is always purple.
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